San Jose, CA (PRWEB) November 15, 2011
Follow us on LinkedIn - Terrorist attacks, plane hijackings and increasing crime rates have underlined the need for greater security measures around the world. Consequently, biometrics is growing in eminence as an essential security measure taken at airports and other critical access sites. The e-passport projects for the US Visa waiver countries, EURODAC, Visa Information System (VIS), and the new generation Schengen Information System (SIS II) are other major drivers that are expected to encourage biometrics usage. Further, the limitations and incontinences with alternative identification methods through photographs, passwords and PIN codes drive the development as well as growth of biometric technologies. Biometrics usage would further increase in public sector owing to criminal and civil security issues, and in commercial sector for cost savings and convenience factors. The process of technology convergence is slated to become critical and virtually inevitable in future for sustaining growth and profitability.
Despite the popular perception that the Security Industry is one of the most recession resilient industries worldwide, capable of providing a positive rate of return to an economys GDP, the global biometrics market ironically showed signs of weakening during 2007-2009, in the midst of steady deterioration in business climate. A key factor fingered to have triggered the decline included the collapse of the construction industry, especially new office, commercial and residential building projects, which brought down new installations of biometrics based access control equipment in buildings and commercial spaces. Postponement and delays in government infrastructure- projects, and cost cutting among commercial establishments, and companies also played instrumental roles in negatively impacting new equipment order influx rates. High levels of unemployment and pruning down of workforce, during this period, also softened corporate focus on biometrics based time and attendance, labor management and timekeeping solutions. Widespread postponements, cancellation of security projects and delays in scheduled system replacements in existing facilities, as a result of distortions in economic variables, such as, drying up of debt markets, lack of capital investments, deep corporate budgets cuts, resulted in declines in replacement demand.
However, given the length, breath and duration of the 2007-2009 recession, the cumulative 12.1% decline in growth during the period, in fact highlights the relative resilience of the biometrics market in comparison with other industries, which witnessed acute and prolonged erosion in growth. In other words, despite the aforementioned deceleration in growth momentum, average annual growth when viewed in isolation, was still a healthy, indicating that the slowdown actually doled out its fair share of opportunities in this space in the form of increased crime rates and thereby increased incentive for investments in these technologies. For instance, recession induced consumer loss of confidence in financial institutions, surging crime rates in most urban and private residential areas, shattered confidence in public safety agencies and law enforcement departments, have all necessitated high-level security arrangements.
The trend towards securing valuable physical assets such as printed business records and documents, cash, data storage devices and jewelry at home, as a result of loss of confidence in financial institutions also generated demand for security systems in the residential sector. The complete collapse in public confidence can be thrown into sharp relief by the fact that bank deposits declined at astounding rates, and the stock market shed trillions of dollars in value. The scenario in general created opportunities for security equipment and biometrics solutions like non-AFIS/finger scan, and iris/retinal scan. Barring instances of withdrawals, postponements and delays of privately funded security projects, large-scale public sector projects were relatively stable and the continued investments in the same, helped support the biometrics industry. The market has also largely benefited from the growing frequency of terrorist attacks and the resulting increases in government expenditures on public safety.
With global economy recovering in 2010, Biometrics market also staged a smart recovery proving that a transient disruption in the economic climate like the recession is unlikely to leave an indelible mark on the market as prevention of authorized access and detection of perpetrators will always remain vital in the overall security arrangements. Going further, growth in the biometrics market will be driven by increasing opportunities from emerging niche market segments. For instance, consumer-based wireless applications such as cellular phones, PDAs and portable computers, and laptops are expected to bolster sales in the silicon fingerprint sensors market.
Applications with the potential of short-term, quantifiable returns on investment such as biometrics enabled time and attendance tools will also experience increased demand in the upcoming years, thereby driving market growth further. Government mandates and regulations have and will continue to boost market prospects for biometrics. Security compulsions of government and law enforcement services will continue to encourage governments to enhance their spending on biometric technologies and adopt the same for government projects such as employee and national ID cards. Incremental technology development induced rise in product sophistication and fall in prices will also help expand demand further. With businesses prioritizing safety and security of physical assets, its opportunities galore in the biometrics market in the upcoming years.
As stated by the new market research report on Biometrics, the US continues to remain the largest regional market for biometrics. Asia-Pacific represents one of the fastest growing regional markets for biometrics, with dollar sales from the region waxing at a CAGR of about 23.8% over the analysis period. Characterized by burgeoning economies, increase in foreign investments, rise in business formation activities, presence of large relatively untapped private security markets and increase in crime rates, Asia-Pacific and Latin America have been witnessing increased adoption of security systems, particularly latest biometric technologies like iris scans, facial recognition. Iris/Retinal Scan market is the fastest growing segment, by technology, with dollar sales waxing at a CAGR of about 25.9% over the analysis period.
Major players in the marketplace include 3M Corporation, AcSys Biometrics Corp., AuthenTec, Inc., BIO-key International, Inc., SecureTouch Retail Systems, Biometric Security Limited, Communication Intelligence Corporation, Ivrnet, DigitalPersona, Inc., Fujitsu Limited, i2 Inc., Imprivata, RCG Holdings Limited, SAFRAN Group, Morpho, SecuGen Corporation, NEC Corporation of America, Precise Biometrics AB, Sensory Inc., Atos Origin S.A., TSSI Systems Ltd., ZK Software, among others.
The research report titled Biometrics: A Global Strategic Business Report announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, growth opportunities, technology overview, challenges, new product introductions, recent industry activity, and profiles of market players worldwide. Market estimates and projections are presented for technology segments AFIS, Non-AFIS/Finger Scan, Hand Geometry, Iris/Retinal Scan, Facial Recognition, Voice Recognition, Signature Verification, and Keystroke Dynamics/Typing Rhythms across all major geographic markets including the United States, Canada, Japan, Europe (France, Germany, UK and Rest of Europe), Asia-Pacific, Latin America and Middle East. End-use analysis for global Biometrics (excluding AFIS) market is provided for segments Government/Civil; Financial; Computer & Network Securit
